Hyundai Motor Group Aims for Recovery in Second Half with New Model Launches and Production Normalization Amid Intensifying EV Competition

*This content was translated by AI.

Hyundai Motor and Kia surpassed 82 trillion won in combined sales on a consolidated basis for the second quarter of this year, achieving record-high quarterly results. While the significant increase in sales of high-value-added vehicles such as HYBE-led models and electric vehicles drove growth in scale, operating profit decreased by approximately 14% compared to the same period last year due to increased sales incentives in global markets and disruptions in parts supply.

According to the automotive industry, Hyundai Motor recorded consolidated sales of 49.2153 trillion won and an operating profit of 2.8509 trillion won for the second quarter. Kia reported sales of 33.370 trillion won and an operating profit of 2.6285 trillion won during the same period. The combined sales of the two companies in the second quarter totaled 82.2523 trillion won, a 5.9% increase from the same period last year, setting a new record. However, combined operating profit fell by 13.9% to 5.4794 trillion won.

Electrification strategies have become central to growth in scale. Hyundai Motor recorded its highest-ever quarterly sales for HYBE-led models, and the share of electrified vehicles in total sales reached a historic high. Kia also increased its global market share as sales of electric vehicles and HYBE-led models rose significantly.

Profitability weakened due to expanded sales incentives and production disruptions. Hyundai Motor faced issues in producing key models after engine parts supply was halted by a fire at a parts manufacturer. The combination of unfavorable model mix and increased incentives added pressure on operating profit. Kia also increased incentives to respond to intensifying competition in overseas markets, and profitability declined due to rising costs from exchange rate fluctuations.

In particular, the price policies of Chinese electric vehicles including BYD, Tesla's pricing strategies, and market restructuring moves by global competitors acted as decisive factors that significantly increased cost burdens and margin pressure across the traditional automotive industry.

The two companies plan to recover performance through new model launches and production normalization in the second half. Hyundai Motor is preparing for parts supply normalization, expanded sales of the Grandeur HYBE-led model, and the introduction of new models such as the new Avante. Kia intends to focus on strengthening its electrification lineup in key markets and maximizing the effects of new models.

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*This content was translated by AI.